Mantra Group announced it has entered into an agreement with the Deague Group to acquire the Australian-owned Art Series Hotel Group for approximately $52.5 million (excluding transaction costs), subject to customary completion conditions.

The acquisition will see seven luxury hotels (representing more than 1,000 guest rooms and including a number of conference and event facilities, restaurants and luxury hotel-style amenities) added to Mantra Group's ever-expanding portfolio of 128 properties and more than 21,500 rooms in properties under management across Australia, New Zealand, Indonesia and Hawaii.

The seven hotels are:

1. The Cullen, Prahran, Melbourne VIC
2. The Larwill Studio, North Melbourne VIC
3. The Olsen, South Yarra, Melbourne VIC
4. The Blackman, St Kilda Road, Melbourne VIC
5. The Chen, Box Hill, Melbourne VIC (which is currently in the final stages of construction and is set to open in November 2017)
6. The Johnson, Spring Hill, Brisbane QLD
7. The Watson, Walkerville, Adelaide SA

Each hotel is inspired and dedicated to Australian contemporary artists, infusing the namesake artist's works and personality throughout the hotel to create unique art-inspired experiences.

Recognising the strength of the brand in the market, each business will continue to operate under the Art Series brand.

These boutique properties are well suited to both leisure and corporate travellers and are located in some of Australia's hottest art and cultural hubs, most of which Mantra Group already has a long-standing and high performing presence.

Mantra Group Chief Executive Officer Bob East said the deal represents a sizeable addition to Mantra Group's already expansive Australian portfolio.

"This acquisition enhances our existing portfolio and presents a unique opportunity for Mantra Group to increase its footprint across three key locations (Melbourne, Brisbane and Adelaide) in a single transaction." said Mr East.

"This is a rare opportunity to acquire a collection of exceptional hotels and one which is expected to make a significant contribution to Mantra Group's business."

"These hotels have been operated to the highest standards by a passionate and dedicated team, and we are delighted to welcome such iconic and favoured properties to our growing network of hotels and resorts."

"We look forward to working with the owners, team members and guests to ensure a smooth transition."

Settlement of the Art Series Acquisition is expected to be completed in late 2017, subject to closing conditions customary for an acquisition of this nature.